GOP States Struggle With Use of Budget Surpluses

Republicans who won control over state legislatures on principles of small government are facing pressure to spend budget surpluses on roads, schools and buildings that were cut or neglected during the recession.

May 14, 2013

Republicans who control a majority of the state capitols in the United States face a philosophical dilemma - what to do with all the money saved from previous cuts to the budget when an improving economy suddenly creates a surplus in revenues.

They won majorities in more than half the statehouses on principled platforms of making government smaller, some Republicans are now facing pressure to spend newfound money on roads, buildings and schools that had been neglected or cut during the recession-induced downturn of recent years.

The president's "America First" message and his new trade barriers have caused anxiety in states where the economy depends on investment from abroad. It's pushing governors to hone their diplomatic skills.